Sunny Optical Technology Group Co Ltd demonstrated fast growth in recent years. Will the growth continue?
21/03/2016 • About Sunny Optical Technology Group Co Ltd (
$2382) • By InTwits
Pay attention to Sunny Optical Technology Group Co Ltd as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Sunny Optical Technology Group Co Ltd showed fast growth in the last financial year. The company's revenue surged on 26.9% in FY2015. In addition to revenue Sunny Optical Technology Group Co Ltd also keeps delivering EBITDA growth. It was 35.8% in FY2015
In the last 3 years the company showed fast revenue growth of 39.0% from 2012 to 2015 annualy. EBITDA surged on 32.4% from 2012 to 2015 annualy.
Sunny Optical Technology Group Co Ltd ($2382) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 2,499 | 3,984 | 5,813 | 8,426 | 10,696 |
|---|
| Revenue growth, % | | 59.5% | 45.9% | 45.0% | 26.9% |
|---|
| Gross margin, % | 20.9% | 18.6% | 16.6% | 15.3% | 16.5% |
|---|
| SG&A, % | 7.27% | 5.38% | 4.37% | 3.80% | 3.29% |
|---|
| EBITDA | 300 | 485 | 635 | 830 | 1,126 |
|---|
| EBITDA growth, % | | 61.5% | 31.0% | 30.6% | 35.8% |
|---|
| EBITDA margin, % | 12.0% | 12.2% | 10.9% | 9.84% | 10.5% |
|---|
| Net Income | 215 | 346 | 440 | 566 | 762 |
|---|
| Net Income margin, % | 8.62% | 8.69% | 7.58% | 6.72% | 7.12% |
|---|
| |
| CAPEX | 170 | 249 | 244 | 274 | 283 |
|---|
| CAPEX/Revenue, % | 6.79% | 6.25% | 4.20% | 3.26% | 2.64% |
|---|
| Debt | 80 | 103 | 535 | 734 | 1,140 |
|---|
| Cash | 252 | 243 | 709 | 525 | 259 |
|---|
| Net Debt/EBITDA | -0.6x | -0.3x | -0.3x | 0.3x | 0.8x |
|---|
| |
| ROIC, % | 12.2% | 19.7% | 17.8% | 16.5% | 19.4% |
|---|
| ROE, % | 13.6% | 19.3% | 18.5% | 18.6% | 21.5% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. EBITDA margin increased on 0.700 pp from 9.80% to 10.5% in 2015. In the last 3 years EBITDA margin dropped on 1.70 pp from 12.2% in 2012 to 10.5% in 2015.
We call Sunny Optical Technology Group Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 19.4%. During the last three years it decreased slightly - it was 19.7% in FY2012. It's average ROIC for the last three years was 17.9%.
The company showed Net Income margin growth of 0.400 pp from 6.70% to 7.10% in 2015. In the last 3 years Sunny Optical Technology Group Co Ltd showed big decline in Net Income margin of 1.60 pp from 8.70% in 2012 to 7.10% in 2015.
Sunny Optical Technology Group Co Ltd operates at ROE of 21.5%. For the last three years the average ROE was 19.5%.
Capital expenditures (CAPEX)
In FY2015 the company had CAPEX/Revenue of 2.64%. The company's CAPEX/Revenue dropped on 3.60 pp from 6.25% in 2012 to 2.64% in 2015. For the last three years the average CAPEX/Revenue was 3.37%.
Leverage (Debt)
Having such a fast growth profile the company keeps low debt level at 0.8x Net Debt/EBITDA. In the last 3 years leverage surged on 1.07x from -0.29x in 2012 to 0.78x in 2015.
Peers in Miscellaneous Manufactur
Below you can find Sunny Optical Technology Group Co Ltd benchmarking vs. other companies in Miscellaneous Manufactur industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| CSR Corp Ltd ($1766) | 24.0% | 12.0% | 9.7% | 123.7% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 1.5% | 22.2% | 43.2% | |
| Time Watch Investments Ltd ($2033) | | 28.2% | 25.4% | 25.6% | 10.4% |
| China International Marine Containers Group Co Ltd ($2039) | 23.4% | -15.6% | 6.6% | 21.4% | |
| Singamas Container Holdings Ltd ($716) | 32.4% | -15.5% | -16.5% | 20.5% | |
| |
|---|
| Median (25 companies) | 23.4% | -7.1% | -0.7% | 6.7% | -10.1% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | | 59.5% | 45.9% | 45.0% | 26.9% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Time Watch Investments Ltd ($2033) | 58.5% | 60.2% | 60.6% | 65.0% | 68.1% |
| Man Sang International Ltd ($938) | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% |
| Lee & Man Chemical Co Ltd ($746) | 46.7% | 34.3% | 35.7% | 41.9% | 39.6% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 35.0% | 33.2% | 35.1% | 37.4% | |
| Launch Tech Co Ltd ($2488) | 39.2% | 27.4% | 33.6% | 33.6% | |
| |
|---|
| Median (24 companies) | 20.7% | 19.8% | 20.8% | 24.9% | 21.9% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 20.9% | 18.6% | 16.6% | 15.3% | 16.5% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 42.8% | 30.4% | 31.3% | 38.4% | 37.6% |
| Man Sang International Ltd ($938) | 18.7% | 24.9% | 15.4% | 37.0% | 33.8% |
| IPE Group Ltd ($929) | 24.9% | 25.6% | 22.5% | 29.5% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 19.5% | 18.4% | 19.8% | 20.6% | |
| Time Watch Investments Ltd ($2033) | 16.8% | 17.6% | 16.8% | 19.4% | 20.5% |
| |
|---|
| Median (25 companies) | 10.2% | 8.0% | 8.2% | 9.5% | 4.7% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 12.0% | 12.2% | 10.9% | 9.8% | 10.5% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 1.4% | 5.8% | 51.1% | 33.7% | 22.8% |
| KEE Holdings Co Ltd ($2011) | 20.9% | 21.8% | 43.7% | 24.9% | |
| China International Marine Containers Group Co Ltd ($2039) | 4.7% | 3.9% | 12.1% | 18.5% | |
| China Environmental Energy Investment Ltd ($986) | 77.7% | 6.1% | 0.4% | 17.9% | 47.6% |
| TK Group Holdings Ltd ($2283) | 8.9% | 13.3% | 8.1% | 13.7% | |
| |
|---|
| Median (25 companies) | 5.0% | 4.7% | 4.3% | 4.4% | 4.9% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 6.8% | 6.2% | 4.2% | 3.3% | 2.6% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| TK Group Holdings Ltd ($2283) | 34.0% | 36.8% | 31.1% | 29.4% | |
| Time Watch Investments Ltd ($2033) | 30.5% | 34.5% | 27.1% | 27.8% | 27.9% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 16.9% | 17.7% | 20.0% | |
| CSR Corp Ltd ($1766) | 13.4% | 11.1% | 11.2% | 15.3% | |
| Yusei Holdings Ltd ($96) | 8.0% | 4.2% | 7.0% | 13.6% | |
| |
|---|
| Median (25 companies) | 6.4% | 4.2% | 3.6% | 3.9% | 1.4% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 19.7% | 17.8% | 16.5% | 19.4% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| South China China Ltd ($413) | 2.3x | | 37.5x | 2,842.3x | |
| Continental Holdings Ltd ($513) | 8.3x | | 20.1x | 92.9x | 4,203.6x |
| China International Marine Containers Group Co Ltd ($2039) | 2.8x | 4.0x | 4.7x | 5.8x | |
| VS International Group Ltd ($1002) | 8.6x | 5.1x | 6.5x | 4.4x | 3.3x |
| Launch Tech Co Ltd ($2488) | -0.4x | 7.6x | 2.4x | 3.9x | |
| |
|---|
| Median (21 companies) | 0.1x | -0.2x | -0.2x | -0.2x | 0.9x |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | -0.6x | -0.3x | -0.3x | 0.3x | 0.8x |
